A Note on the Country Specific Nature of Asymmetric Adjustment: Australia and the United Kingdom

Abstract

Recent research has shown consumers' expenditure in both Australia and the UK to display asymmetric behaviour, but of differing forms. In this note the asymmetric natures of Australian GDP and investment are examined and compared with recent results for the UK. These results highlight the country specific nature of asymmetric behaviour more forcefully than previous results for consumption. This leads to different conclusions over the presence of asymmetry in the two economies rather than just its form.